agency
reasonable care
The fiduciary duty requiring an agent to act with the skill, knowledge, and diligence expected of a competent licensee. It includes researching pricing properly, discovering and disclosing information a competent agent should know, and advising clients to seek experts such as attorneys or inspectors when matters exceed the agent's expertise. Failing this duty can lead to negligence claims.
- Exam tip
- Reasonable care is the R in OLDCAR. A licensee who gives legal or tax advice beyond their competence may breach it; referring to professionals satisfies it.
- Example
- A listing agent who prices a home without checking recent comparable sales and causes the seller to lose $30,000 may have failed to use reasonable care.
Related terms & state variants
Sources
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Last verified: 2026-10-23